Argentina Rental Income Guide 2026

Overview — Rental Income Under Ganancias

Rental income (ingresos por alquileres) in Argentina is classified as "renta de la segunda categoría" (second-category income) under the Impuesto a las Ganancias (IIT). This means it is passive investment income, distinct from employment income (fourth category) or business income (third category). The rental income is aggregated with all other taxable income and taxed at progressive rates of 5-35%. There is no separate rental income tax — the same IIT system applies to all income sources. The key distinction is between residential and commercial rentals: residential rentals benefit from the 40% gastos presuntos (deemed expense deduction), while commercial rentals allow deduction of actual expenses. Rental income is reported on the annual Ganancias tax return (Form F.711 for individuals).

Residential Rentals — 40% Deemed Expense Deduction (Gastos Presuntos)

For residential rental properties (alquileres de vivienda), landlords may deduct 40% of gross rental income as a "deemed expense" (gastos presuntos) without needing to provide receipts or evidence of actual costs. Key features:

• Flat 40% deduction: 40% of the total gross rental income received during the tax year is automatically deducted, leaving 60% as the net taxable rental income
• No receipts required: The 40% deduction applies automatically, regardless of actual expenses incurred. This simplifies compliance for individual landlords
• Eligible properties: Only residential properties (vivienda) qualify. The property must be used as a primary or secondary residence by the tenant. Vacation rentals (alquileres temporarios/turísticos) may also qualify if classified as residential use
• No other deductions: If the 40% deduction is elected, the landlord cannot also deduct actual expenses (property tax, maintenance, insurance, etc.). However, the landlord may choose to deduct actual expenses instead if they exceed 40% of income (this is rare for residential properties)
• Inflation adjustment: The cost basis of the property may be adjusted for inflation (ajuste por inflación) for properties held longer than 12 months, reducing the real capital gain if the property is later sold

Example: If a landlord receives ARS 10,000,000 in annual residential rental income: 40% deemed deduction = ARS 4,000,000, net rental income = ARS 6,000,000. This net amount is added to all other income and taxed at progressive rates of 5-35%.

Commercial Rentals — Actual Cost Deduction

For commercial rental properties (locales comerciales, oficinas, galpones, etc.), the 40% deemed expense deduction is not available. Instead, landlords must deduct actual expenses incurred to generate the rental income:

• Deductible expenses: Property taxes (ABL/ARBA/IPLA), municipal taxes, insurance premiums (fire, liability), maintenance and repairs, depreciation (amortización del inmueble), management fees (if paid to a third party), mortgage interest, and utilities (if paid by the landlord)
• Non-deductible expenses: Capital improvements (mejoras) that increase the property's value must be capitalized and depreciated over time. Personal expenses and fines/penalties are not deductible
• Documentation: All expense deductions require proper documentation: electronic invoices (facturas electrónicas), receipts, and bank records. AFIP/ARCA can audit deductions if receipts are insufficient
• Depreciation: Buildings can be depreciated at 2% per year (50-year useful life). Land is not depreciable. The depreciation basis is the acquisition cost (plus cost of improvements) allocated to the building (not the land)
• Inflation adjustment: The depreciation deduction is adjusted for inflation using the IPC (consumer price index), which is important in Argentina's high-inflation environment

Commercial landlords must also register for IVA (VAT) if the annual rental income exceeds the Monotributo threshold (approximately ARS 25 million/year) — although many commercial landlords choose to register regardless because tenants (who are typically registered VAT taxpayers) need to credit input IVA on rent payments. Commercial rents are subject to the standard IVA rate of 21% (added on top of the rent).

Tax Rates — Progressive 5-35%

Rental income is added to all other income (employment, business, investments) and taxed at progressive federal rates. For the 2026 tax year, the Impuesto a las Ganancias brackets for individuals are:

• Up to ARS 5,000,000/year: 5% (exempt up to ~ARS 2,500,000/year for most employees with standard deductions)
• ARS 5,000,001 — ARS 10,000,000: 9%
• ARS 10,000,001 — ARS 20,000,000: 12%
• ARS 20,000,001 — ARS 35,000,000: 15%
• ARS 35,000,001 — ARS 50,000,000: 19%
• ARS 50,000,001 — ARS 75,000,000: 23%
• ARS 75,000,001 — ARS 100,000,000: 27%
• ARS 100,000,001 — ARS 200,000,000: 31%
• Over ARS 200,000,000: 35%

Note: These brackets are illustrative and adjusted annually for inflation (by IPC — consumer price index). The actual brackets for 2026 will reflect cumulative inflation since the last adjustment. The non-taxable minimum (mínimo no imponible) for rental income depends on the taxpayer's total income and personal deductions (deducciones personales).

IVA (VAT) on Rental Income

Rental income is subject to IVA (VAT) in certain circumstances:

• Residential rentals: Exempt from IVA. The landlord does not charge IVA on residential rent and cannot credit input IVA on property expenses
• Commercial rentals: Subject to IVA at 21%. The landlord must charge IVA on the rent and file monthly IVA returns (Form F.731). The landlord can credit input IVA paid on property expenses (repairs, utilities, insurance, etc.)
• Special regime: Certain short-term rentals (alquileres temporarios, tourism rentals) may be treated as commercial or subject to specific IVA rules depending on the province and the duration of the rental
• IVA perception: Landlords registered as IVA agents may be required to perceive IVA from clients in certain circumstances

Rental Contracts and Tax Implications

Argentina's rental market is regulated by the Civil and Commercial Code (Código Civil y Comercial) and specific rental laws:

• Contract duration: Residential rental contracts have a minimum term of 3 years (since the 2023 reform, reduced from the previous 3-year minimum). The contract may be extended by agreement
• Rent adjustments: Contracts may use any agreed adjustment index (e.g., ICL — Índice de Contratos de Locación, CPI, or a combination). Annual adjustments are typical. The 2023 rental law reform removed the mandatory ICL index, giving parties more flexibility
• Security deposit: Typically 1-2 months' rent, held by the landlord or deposited in a bank account. The deposit is not taxable income but must be returned to the tenant at the end of the lease
• Withholding at source: Corporate tenants (responsables inscriptos) must withhold Ganancias on rental payments to individual landlords at rates of 31.5% (or applicable DTA rate for foreign landlords). This withholding is an advance payment of the landlord's annual Ganancias liability
• Expenses responsibility: Residential tenants generally pay utilities and expenses (expensas ordinarias), while landlords pay property taxes (ABL) and extraordinary expenses. Commercial lease terms are negotiable

Reporting Rental Income

Rental income must be reported on the annual Ganancias tax return. Key reporting requirements:

• Gross rental income: Report all rental payments received during the tax year (including any deposits forfeited by the tenant, if the deposit becomes the landlord's property)
• Withholding certificates: If a corporate tenant withheld Ganancias on your rent, you must include the withholding certificate (certificado de retención) issued by the tenant. The withheld amount is credited against your final tax liability
• Property details: The tax return requires the CUIT of the property (if registered as a separate economic unit), the property address, and the proportion of the property that is rented (if only a portion is rented)
• Joint ownership: If the property is co-owned (e.g., between spouses), each co-owner must report their proportional share of rental income
• Foreign property: Argentine residents who receive rental income from foreign properties must report the gross and net income in ARS (converted at the official exchange rate) and may claim a foreign tax credit for taxes paid abroad

FAQs

Is there a separate rental income tax in Argentina?

No, there is no separate rental income tax. Rental income is taxed under the general Impuesto a las Ganancias (IIT) at progressive rates of 5-35%. It is classified as second-category income (renta de la segunda categoría) and aggregated with all other income for rate determination.

Can I use the 40% deemed deduction for Airbnb or short-term rentals?

Short-term/tourism rentals (alquileres temporarios) may qualify for the 40% deemed deduction if the property is classified as residential (vivienda). However, if the short-term rental activity is frequent and managed as a business (e.g., multiple properties, professional management, active marketing), AFIP/ARCA may reclassify it as business income (third category) rather than passive rental income (second category), in which case the 40% deduction would not apply and actual expenses would be deductible instead.

Do I need to register for IVA as a residential landlord?

No, residential rentals are exempt from IVA. You do not need to register for IVA solely for residential rental income. However, if you also operate a commercial rental business, you must register for IVA for the commercial portion. If your only income is residential rent and it exceeds the Monotributo threshold, you should register in the general Ganancias regime but not for IVA (you remain exempt from IVA for residential rentals).

Can I deduct mortgage interest on my rental property?

Yes, mortgage interest (intereses de créditos hipotecarios) is deductible for rental properties, subject to certain conditions: (1) the mortgage must be registered against the specific rental property, (2) the interest must relate to the period the property is rented (not periods of personal use), and (3) for residential rentals using the 40% deemed deduction, the interest is not separately deductible because the 40% deduction is a flat rate. If you use actual expenses instead of the 40% deduction (which is unusual for residential), mortgage interest is deductible. For commercial rentals (actual expenses), mortgage interest is fully deductible.

What happens if my tenant withholds Ganancias on my rent?

Corporate tenants (responsables inscriptos) are required to withhold Ganancias on rent paid to individual landlords at a rate of 31.5% (or a lower treaty rate for foreign landlords). The withheld amount is an advance payment of your annual Ganancias. When you file your annual tax return, you report the gross rental income and claim the withheld amount as a tax credit. If the withholding exceeds your total tax liability, you receive a refund (devolución) from AFIP/ARCA.

Disclaimer

This guide provides general information about rental income taxation in Argentina for the 2026 tax year. Tax laws, rates, brackets, and rental regulations are subject to change. The information presented reflects published AFIP/ARCA, Ministry of Economy, and tax legislation data and may not reflect individual circumstances, provincial variations, or recent legislative changes. Always consult with a qualified Argentine tax advisor, real estate lawyer, or contador público for advice specific to your rental property situation. InvestmentKit does not provide tax or legal advice.